Govt watching Brexit very closely: PM

The federal government is closely monitoring the fallout from the UK's decision to leave the European Union and has ordered a high-level report on the consequences for Australia.

Prime Minister Malcolm Turnbull has asked the country's finance regulators - including the Reserve Bank and Treasury - to prepare a comprehensive report on Brexit to present to government early next week.

Mr Turnbull says while some stability is returning to financial markets on Monday, considerable political uncertainty remains across Europe.

"We are keeping a very, very close eye on that," he told reporters in Adelaide.

Mr Turnbull is keen to work with New Zealand to maximise opportunities from the move, having already spoken with his Kiwi counterpart John Key about the "considerable" implications.

The prime minister expects to meet with Mr Key shortly after Saturday's election, assuming the coalition wins government, to discuss those issues - which include the movement of people in Europe.

Another priority would be negotiating a free-trade agreement with the UK, because Australia's arrangements are with the EU.

Related Articles

The promise came as Finance Minister Mathias Cormann ruled out increasing the nation's debt in the face of any global economic downturn linked to Brexit.

Senator Cormann insists any extra spending would be offset through savings elsewhere.

"That is a discipline that we are absolutely committed to," he told reporters in Canberra.

Pointing to the coalition's track record on paying for spending, Senator Cormann trumpeted the government's economic management over the past three years amid stagnant global growth.

"We only control what we control," he said while promising policy decisions that put Australia in the strongest position to deal with economic headwinds.

Treasurer Scott Morrison warned cool heads were required to deal with Brexit, which he believes is a "simple reminder" of uncertainty.

Brexit wasn't the only issue creating headwinds in the global economy, Mr Morrison said, citing changes in China, the deflation and currency concerns in Japan and the political situation in the US.

Shadow Treasurer Chris Bowen believes neither the government nor opposition should be talking about stimulus because it wouldn't be necessary.

Brexit would be "much less intense" on global volatility than the events of 2008 that led to the global financial crisis and would have very limited direct impacts on Australia, he said.

"I do not see the need to contemplate those sorts of actions," he told reporters in Sydney.

Meanwhile, John Howard recycled one of his most famous lines while arguing Brexit was the right decision.

The former Liberal prime minister dismissed suggestions it was racism and xenophobia that fuelled the Brexit vote.

Britons had felt for years their borders could not be controlled.

"It is not a rejection of immigration but a reaffirmation of the nation's determination to decide, as I declared, `we'll decide who comes, the numbers and the skills that come with them'," he told Sky News.

Mr Morrison refused to pre-judge which regulatory measures may be considered in the report.

"I'm going to allow what is a very experienced group of people to be able to give that advice unsullied to an incoming government," he told reporters in Canberra.